Energy think-tank Energy & Associates Ghana has observed that the country’s power generation capacity is currently under strain and this is likely to worsen by the close of 2024.
It says the situation needs careful management of resources and increase in power generation capacity and reduction in exports.
This was contained in a report issued on Wednesday, March 20.
“Ghana’s power sector is at a critical juncture, as Gas Supply chain challenges coupled with huge debts in the sector and poorly managed cedi being the cause,” the report said.
“These challenges are not episodic but are rooted in a history of oversight, mismanagement, and,
notably, the politicization of a sector vital to the nation’s socio-economic stability.
“The entanglement of procurement interests over strategic problem-solving has funneled the sector into a vortex of heavy indebtedness and operational inefficiencies, exacerbated by the precarious management of the cedi.”
Breaking down the challenges in the sector, Energy & Associates Ghana suggested steps to address the current challenges.
It mentioned technical and economic decision-making, robust fiscal and currency management, infrastructure and efficiency enhancements and renewable energy diversification as the steps.
“Mitigating the reliance on imported fuels through the acceleration of renewable energy sources is essential,” the think-tank stated under renewable energy diversification.
“This not only addresses the currency risk but also aligns with global sustainability goals.”
Energy & Associates is calling for immediate action to address the challenges.
“The imminent power crisis by year’s end necessitates immediate action from all stakeholders.
“By addressing the gas supply challenges with technical acuity and adopting a comprehensive approach to sector reform, Ghana can pave the way for a more stable, sustainable, and prosperous energy future. This collaborative effort must be grounded in transparency, strategic foresight, and a commitment to the national interest above all.”